Comments on: EXPECTATION RATIO DROPS, BUT REMAINS NEAR HIGHS http://pragcap.com/expectation-ratio-drops-but-remains-near-highs Sun, 12 Feb 2012 13:32:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: teomax http://pragcap.com/expectation-ratio-drops-but-remains-near-highs/comment-page-1#comment-8710 teomax Tue, 10 Nov 2009 15:41:25 +0000 http://pragcap.com/?p=12432#comment-8710 just read statistical summmary of profits: 63% negative y/o/y EPS 87.9% of those being double digit 75.4% > 20% decline 63.6% > 30% 45.4% > 50%. just read statistical summmary of profits:

63% negative y/o/y EPS
87.9% of those being double digit
75.4% > 20% decline
63.6% > 30%
45.4% > 50%.

]]> By: Rob http://pragcap.com/expectation-ratio-drops-but-remains-near-highs/comment-page-1#comment-8704 Rob Tue, 10 Nov 2009 12:24:37 +0000 http://pragcap.com/?p=12432#comment-8704 There seems to be a clear expectation from the anaysts that earnings will steadily increase each quarter from now on. Margins are back above historical average. Next quarter practically every company will beat last year, but the likelyhood that they will beat estimates seems to be shrinking. If sales don't pick up at some point earnings will no longer show a quarter to quarter increase for the S&P500 in aggregate. That my even come in Q4 or sometime next year. Coming out of the last recession the rally brokedown and stagnated on a unfavorable quarter to quarter earnings miss. If the analysts estimates for Q4 are correct we should see the S&P at 1,200 early next year. If not, we might get the correction everyone has been looking for. There seems to be a clear expectation from the anaysts that earnings will steadily increase each quarter from now on. Margins are back above historical average.

Next quarter practically every company will beat last year, but the likelyhood that they will beat estimates seems to be shrinking. If sales don’t pick up at some point earnings will no longer show a quarter to quarter increase for the S&P500 in aggregate. That my even come in Q4 or sometime next year.

Coming out of the last recession the rally brokedown and stagnated on a unfavorable quarter to quarter earnings miss. If the analysts estimates for Q4 are correct we should see the S&P at 1,200 early next year. If not, we might get the correction everyone has been looking for.

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